The present disclosure is directed to check printing apparatus and a method of using the apparatus to enhance the printing of checks. This is best placed in context by review of the procedure by which checks are negotiated.
Typically, a depositor opens a checking account in an issuing bank and is provided with preprinted checks. Among other things, the preprinted checks include fields which encode several sets of important numbers. One of the important numbers is the bank number which is unique to the issuing bank. In addition to the bank number, there is an account number which identifies that particular customer or the account of the customer. The account number is important so that the debits and credits are properly allocated to the correct account. Another data is the check number. The check number is included so that the customer is able to correlate the check sum of the particular check with the check number so that the monthly statement can be reconciled both with the check number and amount in an organized fashion.
Deposits are made periodically and withdrawals are made by issuing checks. When the checks are presented to various merchants, those merchants typically deposit the presented checks of the customer along with checks of numerous other customers in their own account. By means of a network of check clearing routes, the checks are transferred between financial institutions. The issued check may be mailed across the country and is returned to the issuing bank through banking channels. As will be understood, suitable debits and credits are made so that the customers account is balanced daily to the remaining amount.
When the checks are transferred from a foreign bank, they are ultimately received at the issuing bank. Checks are then entered against the various accounts of that particular bank. This process is known as check proofing. It is necessary to encode certain data on the check so that proofing can be carried out. Because of the large number of checks received by a typical financial institution, the proofing department is a substantial undertaking, and involves numerous personnel. A very substantial and important step in the proofing department is the encoding of the check sum. The check sum is determined by the customer; for instance, the customer may elect to pay by means of check for goods and services received from all around the country. In the example given below, where the sum is $329.00 for purposes of description, assume that the bank depositor utilizing a preprinted check issues a check in the amount of $329.00 for satisfaction of some purchase. In that event, the check is received back at the issuing bank of that depositor and passes through proofing department. It is necessary to type the proof information on the face of the check. This is a step which requires hand labor.
The check sum is written on the check in two forms. The check sum is written in Arabic numerals. This however is not the controlling entry. While it is convenient and it is meant to be the same as the amount of the check, they are not always the same of legible handwriting or free of depositor error. When the bank customer issues a check, the check sum must be spelled out. Using the example of $329.00, the check requires an entry of $329.00. The personnel in the proof department must read the Arabic entry as mentioned, the handwritten sum entered above and encode the check sum on the face of the check.
The present disclosure is directed to a check printing apparatus which, in the hands of the depositor, enables the bank to reduce the labor and related activities necessary for proofing the avalanche of checks which are received on a daily basis.
Proofing at the bank is necessary to make the necessary deductions or additions to the accounts of the numerous customers at the bank. This is labor intensity. The labor is involved in typing the check sum for the third time on the face of the check. At the time of issuance, that number is entered twice by the depositor. The present system proposes that the depositor enter the amount a third time in the fashion to be described. The third entry is preferable made in the form of MICR ink. The preprinted check ordinarily includes the bank number, the check number, and the account number in MICR ink. This is ink which, while black and opaque, also includes sufficient ferrous metal materials to enable an MICR reader to recognize the characters. When the check is negotiated by the depositor, the check sum is the primary entry which is created in the proofing department so that the check can be posted to the account of the customer to enable the proper debits and credits to be made. Accordingly, substantially all the labor involved in the proofing department is related to the steps of entering the check sum in MICR ink.
One aspect of the present invention proposes a system in which the check, at the time it is issued, is encoded with the proper MICR entry. In other words, the check sum is located at the right location on the check for easy reading. Likewise, it is recorded in MICR ink so that the same equipment which read other fields of data can likewise recognize this data. This particularly finds advantage with a device which is provided by the Panasonic Corporation and is sold as Model KX-RC100. This particular device is known as the CPA or check printing accountant. It is able to write checks. It incorporates a calculator function which enables the various and sundry data on the check to be recorded and saved. Moreover, it also enables the capture of data regarding the check at the time it is actually printed. This equipment is able to print the payee and the check sum. The date likewise can be entered. All of this is entered at the appropriate locations on the blank check.
As a generalization, the check is laid out with a common format. Utilizing that format, the check is provided with a first blank which is for the date. A second field is the field in which the payee is entered. A third field is the Arabic entry of the sum, hereinafter the check sum. The fourth field is the check sum which is usually long hand or in a spelled out version. This provides conformance to the various codes determining legal rights and remedies with regards to bills, notes, checks, drafts, etc. The fifth field is an entry for any memo such as identification of a particular bill for a particular month. The sixth field is the check sum and it is the same value as the third and fourth fields. The sixth field however is like the third field in that it is preferable entered in Arabic form. However, the Arabic format for the sixth field is the MICR shaped characters which are readable by MICR reading equipment. In this instance, the ten symbols representing the ten numeric values are modified in shape so that they are nevertheless readable to the human eye and are also readable by MICR reading equipment. That equipment is provided, among others, by vendors such as the Burroughs firm. Burroughs' has provided a large share of the check proofing equipment in use by financial institutions in this country.
One aspect of the present disclosure is that a check writing system is set forth which reduces the proofing steps of the bank for the bank depositor. The depositor thus has only to perform this step to enable the bank to reduce the cost of providing its services. This enables the service charge to be reduced. By reduction of the service charge, the present system is able to provide the same banking services at a reduced expense.
Going now to another aspect of the present disclosure, the check is provided with a sixth field so that the MICR readable characters are included for the check sum. This is helpful at the time of proofing. It is printed typically on a wallet size check which is ideally processed by the CPA equipment mentioned above. The CPA equipment preferably prints what is known as a standard wallet check. This is a check which has dimensions of about 2.75 inches by 6 inches. The financial institution, normally a bank in the ordinary course, provides to the depositor a supply of prenumbered checks which have the depositor's account number printed on them. As was discussed, this is prepared before the checks are distributed to the depositor. Once the depositor is provided with such checks, the checks are issued to a payee that the depositor selects and are encoded with the check sum. In this modified approach, the check sum is entered in three locations. The locations are at the third, fourth and sixth fields for entry of data. The check sum, once entered, markedly enhances the dispatch of the check through banking channels so that it is returned to the issuing bank. This is especially accomplished through the use of the present apparatus which represents a modification of the CPA equipment provided by Panasonic.